Definitions and Index of Definitions

(1)In this division unless the context otherwise requires

(a)A security is an instrument which

(i)Is issued in bearer or registered form; and

(ii)Is of a type commonly dealt in upon securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment; and

(iii)Is either one of a class or series or by its terms is divisible into a class or series of instruments; and

(iv)Evidences a share, participation or other interest in property or in an enterprise or evidences an obligation of the issuer.

(b)A writing which is a security is governed by this division and not by Uniform Commercial Code -- Commercial Paper even COL120106 DIV. 8 INVESTMENT SECURITIES though it also meets the requirements of that division. This division does not apply to money.

(c)A security is in registered form when it specifies a person entitled to the security or to the rights it evidences and when its transfer may be registered upon books maintained for that purpose by or on behalf of an issuer or the security so states.

(d)A security is in bearer form when it runs to bearer according to its terms and not by reason of any indorsement.

(2)A subsequent purchaser is a person who takes other than by original issue.

(3)A clearing corporation is a corporation all of the capital stock of which is held by or for a national securities exchange or association registered under a statute of the United States such as the Securities Exchange Act of 1934.

(4)A custodian bank is any bank or trust company which is supervised and examined by state or federal authority having supervision over banks and which is acting as custodian for a clearing corporation.

(5)Other definitions applying to this division or to specified chapters thereof and the sections in which they appear are: Adverse claim. Section 8301. Bona fide purchaser. Section 8302. Broker. Section 8303. Guarantee of the signature. Section 8402. Intermediary bank. Section 4105. Issuer. Section 8201. Overissue. Section 8104.

(6)In addition Division 1 (commencing with Section 1101) contains general definitions and principles of construction and interpretation applicable throughout this division.